“The pursuit of technological solutions to best place the Australian economy in a carbon constrained future makes much more sense than imposing tax-type measures that achieve little and will not promote technological innovation,” said ESAA chief executive Brad Page.

 

The Federal Government this week revealed its National Energy Policy for the future, with strong support for clean coal technology. There was a focus on the more efficient use of brown coal, geothermal power and cleaner coal mining with the prime minister displaying an interest in the new geosequestration technology.

 

“The states would make a bigger contribution to greenhouse gas abatement if they removed their current approaches to regulated retail price controls that encourage the use of energy without regard for its real cost. Prices that do not reflect the cost of supply, especially during hot summers, simply encourage inefficient use and higher greenhouse emissions,” he said.

 

Page was in support of the greenhouse gas abatement aspects of the paper but said the government’s statement could have been strengthened by the setting of a long term target for greenhouse gas emissions.

 

“The stationary energy sector makes large investment decisions, many worth hundreds of millions of dollars. The resulting assets last for 35 to 50 years. We need to know what level of greenhouse emissions the Australian economy is aiming for in 2050. Sensible investment decisions, including in new technology under Low Emission Technology Fund, can then be made much more easily.”